German business "desperate & angry" with government's lockdown approach

Business groups in Germany have ramped up attacks on the federal government over its refusal to loosen coronavirus restrictions, as calls for an exit strategy to one of Europe's longest lockdowns grow louder. 

A crisis meeting with economy minister Peter Altmaier held earlier this week saw 40 groups representing tourism, retail, hospitality and other sectors line up to censure Berlin's pandemic policies.

Following the meeting, Guido Zöllick, head of the German association of hotels and restaurants DEHOGA, said: “Businesses are growing increasingly desperate, and angry,” adding that “more and more fear for their existence.”

Read more: Germany slashes GDP forecast and extends national lockdown

Much of the criticism revolved around a meeting last week between Chancellor Angela Merkel and the heads of Germany's 16 federal regions. Reflecting fears over the rapid spread of new, more aggressive coronavirus strains, it was agreed that the lockdown would be extended until March 7. While the move was welcomed by virologists, it was met with dismay by the business community.

A partial lockdown began in Germany on November 2 last year, which saw new infection numbers stabilised but not reduced as a result. 

The government announced the lockdown restrictions would be tightened from December 1 until mid-January, which saw all but essential shops and services closed. These restrictions have been extended three times since then with the most recent extension due to end on March 7.  

From that date, non-essential shops will be permitted to reopen only if the local seven-day incidence rate is not in excess of 35 for three days running. Previously, the target was set higher at 50 infections per 100,000 people. 

No plan has yet been put forward for the reopening of restaurants, which are currently open only for takeaway and delivery, as well as hotels, which currently are open for those travelling on authorised business only.

The government's decision has meant that Germany is experiencing a much harsher lockdown than most of its neighbours and other EU countries. Non-essential shops are open again in Italy, France and Austria, and in cities such as Madrid, cafés and restaurants are functioning. Meanwhile, neighbouring Poland has reopened hotels, cinemas and theatres, albeit with reduced capacity.

Read more: Germany mulls stopping air travel due to Covid mutations

A study conducted by EuroCommerce showed that in 19 out of 31 European nations, all shops are open, even in some countries with higher infection rates and Covid-related deaths than Germany. Figures released yesterday by the Robert Koch Institute (RKI) showed a seven-day incidence of 57 per 100,000.

Businesses have also been highly critical over long delays in aid payments with many still awaiting compensation for November when the second lockdown began.

With a federal election looming in late-September, the extended lockdown could become a problem at the ballot box for Merkel's Christian Democratic Union party. While approval ratings for Merkel and her party soared throughout the pandemic, there is growing frustration over the restrictions as well as the slow speed at which vaccinations have been rolled out.

Yesterday's figures from Our World in Data showed that 5.47 out of 100,000 people in Germany had received at least one dose of a Covid-19 vaccination. Though this is reflective of wider problems with its rollout across the EU, it is the source of much criticism levied at national governments and at Brussels, especially in light of the effectiveness of the vaccination programme in the UK, which is now no longer a member of the bloc. The same data showed that 25.04 of 100,000 people in the UK had received at least one dose.

The summit between business leaders and Altmaier earlier this week gave an opportunity for some of the worst-hit sectors to air their grievances over the government's approach to the lockdown. 

Josef Sanktjohanser, head of retail trade group HDE said his members were "deeply disappointed", describing the current measures as "indiscriminate" and "excessive".

 "There’s no appropriate reason to stop retail outlets reopening above an incidence rate of 35," he said, adding that 65% of shops in German city centres were expected to file for insolvency this year if they did not receive more state aid.

Read more: Eurozone poised for recovery as pandemic restrictions lift

The distribution of state aid was another sore point for many of the business leaders. The head of Germany's tourism association, BTW, Michael Frenzel, said that 25% of November's aid payments and 75% of those from December had still yet to be paid.

Altmaier acknowledged that many companies were facing "uncertainty", promising to consult them regarding a strategy for reopening in time for the next scheduled meeting Merkel and the heads of the federal regions on March 3. He also said that the government would be lifting a cap excluding companies with over €750 million in annual sales from applying for emergency state aid.

However, in a warning about the decision to relax the shutdown, Altmaier said that the population's safety came above any other consideration, telling ARD television prior to the meeting that, "the economy can’t flourish if we get a third wave of infections.”

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